B9 - Sunday, December 9, 1984 - North Shore News

Good

their hands full

year-round, but they’re given a break at tax

time.

As a Single parent, you can
use the Child Tax Credit,
make deductions for daycare
expenses, and even claim a
child as if he or she were your
spouse to soften the blow at
tax time.

Of these, the Child Tax
Credit is one way to make
money when you file an in-
come tax form, even if you
had no income for the year
(and hence, no taxes to be
refunded). Up to $367 per
child can be claimed for each
child under 18 whom you
receive family allowance che-
ques for.

To claim this money, you
must first calculate your net
income for the year. This
figure must imchide income
from family allowance
cheques.

You must also include in
this figure the net income of
your spouse or the parent of
the child if you were living
together at the end of the tax-
auion year. (This does not ap-
ply if you split up in 1984,
even if your spouse or the
parent left on Dec. 31.)

The net income of anyone
who claims your child as a
dependent must be included
in the total., 1.e. a young
woman and her child live
with her parents. her father
claims her child as a depen
dent, so his net income must
be added to hers for her to
claim the Child Tax Credit
Also, her family allowance
income 1s added to his in

By LISA SMEDMAN

come, rather than to hers.)
CHILD TAX CREDIT

If the total net income 1s

equal to or less than $26,330

you can claim $367 per child.
If it is above this figure, the
Child Tax Credit is reduced

by five per cent of the
amount by which the total ex-
ceeds $26,330. (i.e.: A

woman claiming one child
who had a total net income of
$27,830 is $1,500 over the
maximum. She subtracts $75
(5 per cent of $1,500) from
$367, and will receive $292.)

Any child who turned 18 in
1984 is not eligible. But if you
had a baby during the year,
even on Dec. 31, that child
will be eligible.

The best part of the Child
Tax Credit is that the money
you receive from it 1s tax free
and need not be declared in
1985.

One way to lower your net
income total is to make
deductions for daycare ex-
penses. Any money paid toa
daycare facility or babysitter
1s deductible, so long as it
was an expense that enabled
you to work or attend a job
traming course

DEDUCT EXPENSES

You can deduct all actual
expenses paid to a C anadian
resident, and up to $60 a

week per child for lodging at
a boarding school or camp
(tO a maximum of $240 a
week). You must, however,
have receipts for everything.
And you can’t deduct any
money paid to anyone you
claim as a dependent, or toa
relative under 21 (excluding
nephews and nieces).

Daycare is deductible for
children who were under 15
at some time tn 1984, or for
older children dependent on
you due to physical or mental
infirmities.

You can deduct either: the
total amount spent; $2,000
per child (to a maximum of
$8,000); or two-thirds of
your 1984 income, (if you
have an income), whichever
is lowest.

There 1s also a way to
reduce your taxable income.
It is called the ‘‘equivalent to

married exemption’’, and
was designed for single
parents. tt allows you to

deduct a maximum of $3,470
for one of your children as if
he or she was your spouse.

news for single parents

INGLE PARENTS have

You can only do this for
one child, and you must be
living in a_ self-contained
residence for which you pay
at least part of the rent.
(Boarding with your parents
or a friend rent-free doesn’t
count.)

MARRIED EXEMPTION

Unhke the exemption for
dependents, the equivalent to
married exemption has no
age limit for the child, and he
or she need only be living
with you for a fraction of the
year. Your child must be
related to you by blood or
marriage, however, or be
legally adopted. (The term
‘“*blood’’ includes grand-
children, nieces and
nephews.)

The only catch is that
whoever you claim as eu-
qivalent to married must
have a net income under
$490. Any net income over
this figure must be deducted
from a married exemption
claim of $3,960. (i.e.: A child
with net income of $560
would produce an exemption
of: $3,960-$560 = $3,400.)

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eh aS

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